GBPUSD TECHS: Monitoring The Hammer Candle Pattern
- RES 4: 1.1287 20-day EMA
- RES 3: 1.1274 High Sep 23
- RES 2: 1.1209 1.0% 10-dma envelope
- RES 1: 1.1075 High Sep 29
- PRICE: 1.1050 @ 16:09 BST Sep 29
- SUP 1: 1.0541/0350 Low Sep 28 / All Time Low
- SUP 2: 1.0203 3.236 proj of the Jun 16 - Jul 14 - Aug 1 price swing
- SUP 3: 1.0108 3.382 proj of the Jun 16 - Jul 14 - Aug 1 price swing
- SUP 4: 1.0032 3.50 proj of the Jun 16 - Jul 14 - Aug 1 price swing
Bearish trend conditions in GBPUSD remain intact although activity is likely to stay volatile near-term. Monday’s low of 1.0350 is a key short-term support. The primary trend is down and a break of this level would confirm a resumption of bearish activity. Note that Monday’s price pattern is a hammer candle and a potential reversal signal. A break of Monday’s 1.0931 high is required to strengthen this signal and this would highlight a short-term base.
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GBPUSD TECHS: Fresh Trend Low
- RES 4: 1.2073 50-day EMA
- RES 3: 1.2004 Low Aug 5
- RES 2: 1.1901 High Aug 26
- RES 1: 1.1783 High Aug 29
- PRICE: 1.1658 @ 17:03 BST Aug 30
- SUP 1: 1.1622/1600 Low Aug 30 / Round number support
- SUP 2: 1.1503 Low Mar 24 2020
- SUP 3: 1.1447 Low Mar 23 2020
- SUP 4: 1.1412 Low Mar 20 2020 and a major support
GBPUSD started the week on a bearish note and traded lower again Tuesday. The move lower resulted in a break of 1.1718, Aug 23 low, to confirm a resumption of primary downtrend. Note that moving average studies are in a clear bear mode position, highlighting current sentiment. The focus is on 1.1600 next. On the upside Friday’s 1.1901 high marks the first key short-term resistance.
US EURODLR OPTIONS: BLOCK, Dec ITM Put Spd Sale
- 10,000 Red Dec'23 97.00/98.00 put spds, 77.0 vs. 96.245/0.15% at 1320:53ET
EURUSD TECHS: Consolidation Mode
- RES 4: 1.0327 High Aug 12
- RES 3: 1.0228 Channel top drawn from the Feb 10 high
- RES 2: 1.0193 High Aug 18
- RES 1: 1.0090 High Aug 26 and key near-term resistance
- PRICE: 1.0030 @ 17:02 BST Aug 30
- SUP 1: 0.9883 1.764 projection of the Jun 9 - 15 - 27 price swing
- SUP 2: 0.9800 Round number support
- SUP 3: 0.9785 2.00 projection of the Jun 9 - 15 - 27 price swing
- SUP 4: 0.9690 Channel base drawn from the Feb 10 high
EURUSD remains in a range though and is consolidating. The downtrend remains intact. Recent weakness resulted in breach of former key support at 0.9952, the Jul 14 low. The break confirmed an extension lower inside the bear channel (drawn from the Feb 10 high) and a resumption of the primary downtrend. The focus is on 0.9883 next, a Fibonacci projection. Firm short-term resistance is seen at 1.0090, the Aug 26 high.
